Question

at 10% compound rate of interest the amount of compound interest for the third year is
RS. 12100. Then the total amount of compound interest for 3 years is​

Answer 1

Answer:

Total amount of compound interest is 33100 Rs.

Step-by-step explanation:

The formula for compound interest is

$\boxed{A=P(1+\frac{r}{100})^n-P}$

Here,

$A=12100$

$r=10$

$n=3$

Therefore,

Coumpound interest for the 3 years - compound interest for 2 years = 12100

$12100=P(1+\frac{10}{100})^3-P(1+\frac{10}{100})^2$

$\implies 12100=P(1.1^3-1.1^2)$

$\implies 12100=P(1.331-1.21)$

$\implies P=\frac{12100}{0.121}$

$\implies P=100000$

Thus, total amount of compound interest

$A=100000\times 1.1^3$

$\implies A=100000\times 1.331$

$\implies A=133100$

Total compound interest

$=A-P$

$=133100-100000$

$=33100$

Therefore, total compound interest is 33100 Rs.

Hope this helps.